According to Pew Research Center, nearly one in five U.S. households now includes more than two generations—and the numbers might be even higher in Hawaii. While living together is a beloved island tradition, it can also bring about emotional and financial challenges.

Benefits and challenges of multigenerational living

Sharing a home can strengthen family bonds and make life more affordable. Families often save on housing costs, share caregiving duties, and enjoy more time together. But it’s not always easy to split expenses fairly, and planning for medical and long-term care needs can raise sensitive issues about the loss of privacy and independence.

Before moving in together, it’s a good idea to talk openly about expectations—financial and otherwise—to keep the peace and avoid surprises later.

Creating a family budget

Establishing a clear family budget is the foundation of financial harmony. It requires transparency, collaboration and common goals. Here’s how to make it work:

Start with a complete picture of household finances

• Gather all sources of income: Include salaries, 401(k) or IRA withdrawals, pensions, Social Security, and any side businesses.
• List shared expenses: List mortgage or rent, utilities, groceries, and childcare, as well as individual costs such as personal subscriptions or car payments.
• Don’t forget irregular expenses: Add property taxes, school fees, or seasonal travel, as well as recurring annual fees like car registration, store memberships and vet bills.

Divide costs in a way that feels fair

• Do what’s right for your ohana: Some families split based on income contribution, while others use space usage or specific needs (e.g., grandparents covering utilities, parents handling childcare).
• Use shared budgeting apps: Simplify family budgeting with mobile apps that track expenses in real time and avoid misunderstandings.
• Agree on how to handle big-ticket items: Agree on who covers home repairs, medical bills, or vacations—before they arise.

Keep communication open and ongoing

• Schedule monthly family meetings: Talking can be hard, so set aside time to share concerns and adjust to life changes.
• Document decisions. It’s easy to forget, so a written document can serve as a gentle reminder.

Financial tip: Create a “household fund” for shared expenses and emergencies. Each family member contributes a set amount monthly, making it easier to manage bills without constant recalculations.

Healthcare and long-term care planning

Healthcare needs can vary widely—from pediatric checkups to chronic condition management and eldercare. Coordinating these needs under one household means reviewing insurance coverage for gaps, budgeting for out-of-pocket costs, and preparing for unexpected medical events.

It’s also about emotional security—knowing that care decisions won’t create financial strain or family conflict.

Healthcare tip: Create a shared health binder or digital folder with everyone’s insurance details, medication lists, and emergency contacts. This simple step saves time and stress when urgent decisions arise.

Financial tip: As your financial advisor for assistance in choosing long-term care insurance plans designed around what your loved ones value most.

Retirement and estate planning for multiple generations

When several generations share a home, retirement and estate planning get more complex because you’re balancing multiple financial timelines and priorities under one roof. Parents may be focused on building retirement savings, while grandparents might already be drawing down assets. At the same time, younger family members could need support for education or first-time home buying. Coordinating these goals requires clear communication and careful planning.

Key considerations might include:

• Aligning retirement strategies: Make sure each generation understands how shared living affects their retirement savings and withdrawal plans.
• Updating legal documents: Wills, trusts, and powers of attorney should reflect the current household structure and responsibilities.
• Planning for intergenerational wealth transfer: Decide how assets will pass smoothly to the next generation while minimizing taxes.
• Managing shared expenses and caregiving costs: Factor in long-term care for kupuna and potential financial support for younger family members.

Bankoh Advisor tip: Schedule an annual family financial review with a trusted financial advisor. It’s a great way to keep everyone informed, update documents, and adjust plans as life changes.

Tax benefits for caregivers: updated for 2025

If you care for kupuna (parents or relatives) or dependent keiki, you may be able to qualify for valuable tax credits and deductions. Remember to keep receipts for medical and caregiving expenses—they could make a big difference at tax time.

• Credit for Other Dependents: You can claim up to $500 for each qualifying dependent who doesn’t meet the child tax credit criteria, such as an elderly parent.
• Medical Expense Deduction: If you itemize, you may deduct qualifying medical expenses that exceed 7.5% of your adjusted gross income.
• Child and Dependent Care Credit: If your parent qualifies as a dependent and you incur care expenses while working, you may claim 20%–35% of eligible costs, up to $3,000 for one dependent or $6,000 for two or more dependents.

Bankoh Advisor tip:  Review IRS guidelines or speak with a Bankoh Advisor to ensure you maximize every benefit available to you.

Building an emergency fund: your shared safety net

An emergency fund is a cash reserve to cover financial emergencies, including loss of income, medical bills, car repairs, and more. Here are some things to consider: 

1. Set a target: Aim for 3–6 months of shared living expenses.
2. Choose accessible accounts: Use joint checking and savings accounts with clear access rules.
3. Automate contributions: Schedule transfers from everyone’s income.
4. Review regularly: Adjust as household needs change.

Helpful tip: Treat emergency fund contributions like a bill—non-negotiable and automatic.

A single solution for mutigenerational households

Ensuring financial stability for your whole ohana can feel overwhelming—but you don’t have to do it alone. At Bankoh Advisors, our financial advisors live in your community. We understand your concerns, and are here to help you care for your loved ones with respect. For information on insurance, investments, and financial and estate planning, book a complimentary consultation.

Bankoh Advisors is a marketing name of Cetera Investment Services. Securities and insurance offered through Cetera Investment Services LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity. Investments are: Not FDIC/NCUSIF insured | May lose value | Not financial institution guaranteed | Not a deposit | Not insured by any federal government agency.

Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services. 130 Merchant Street CC888 Honolulu, HI 96813. 808-694-8500